Reinhold Industries Inc. shares surged on Wednesday after the Santa Fe Springs-based company declared a special cash dividend of $11.75 a share.

The dividend, payable on Dec. 28 to class A shareholders of record on Dec. 17, will come from its cash on hand and a new $36.5 million credit facility.

Reinhold shares were trading at $25.74 each when Nasdaq halted activity for the announcement around midday. When trading reopened 35 minutes later, the stock shot ahead by $6. The shares closed the day at $35.16, up 35.5 percent or $9.21 a share.

Reinhold said that, based on current projections for 2005, it plans to continue to pay regular quarterly cash dividends of 50 cents per share.

As of Dec. 3, the Santa Fe Springs-based company had 3.2 million class A shares outstanding.

Reinhold Chairman Roy Whitney said the “company believes capital should be returned to stockholders in the form of the special dividend to provide liquidity with respect to their shares.”

Reinhold makes composite components and sheet molding compounds for defense and commercial applications in the United States and Europe.